A Study On The Impact of Corona Virus (Covid-19) On The Global Food Industry

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A STUDY ON THE IMPACT OF CORONA VIRUS (COVID-19) ON THE GLOBAL FOOD

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Article · June 2020
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Ashima Bansal Rajiv Kumar Sadhana

Seth Jai Parkash Mukand Lal Institute Of Engineering & Technology Seth Jai Parkash Mukand Lal Institute Of Engineering & Technology
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International Journal in Management and Social Science
Volume 08 Issue 06, June 2020 ISSN: 2321-1784 Impact Factor: 6.178
Journal Homepage: http://ijmr.net.in, Email: irjmss@gmail.com
Double-Blind Peer Reviewed Refereed Open Access International Journal
A STUDY ON THE IMPACT OF CORONA VIRUS (COVID-19) ON THE GLOBAL

FOOD INDUSTRY
Sandeep Saini
Student of Master of Business Administration (2nd sem), Seth Jai Parkash Mukand Lal Institute
of Engineering And Technology, Radaur
Ashima Bansal
MBA, M.Phil, M.Com., UGC-NET
Assistant Professor, Seth Jai Prakash Mukand Lal Institute of Engineering & Technology,
Radaur
Rajiv Kumar Sadhana
Assistant Professor
Seth Jai Prakash Mukand Lal Institute of Engineering & Technology, Radaur
Abstract:
Food industry is a complex but major industry in the whole world. As its name described that it
supplies food consumed by the most of the people in world. Everyone depends on the food
industry in the world except those farmers who grow crops for their food needs and hunters who
hunt for their survival.
All the restaurants, hotels and other food suppliers come under food industry. They supply food
from a particular place or by home delivery of food.
Every food supplier has their own marketing strategies to enhance their business. There are many
problems which are faced by every food supplier because of the high competition in the market.
Nowadays, a big and major problem faced by every food supplier in food industry whether it is
big or small and that is Coronavirus. It has worse effect on the food industry.
Keywords: Coronavirus, Food suppliers/ Food industry, Worse effect.
Research Methodology:
The study aims to get a better understanding of the problem by explaining the concepts. The
study is Exploratory research where the information is gathered from different online sources.
Research Objectives:
1. To explore about the effect of coronavirus on food industry.

2. To predict the future marketing strategies adopted by the food industry.
3.
60 International Journal in Management and Social Science

http://ijmr.net.in, Email: irjmss@gmail.com
Food Industry outlook:
 The global food industry is growing at around 5% a year and global expenditure on food
products by consumers is expected to reach US$20 trillion by 2030.
Source: https://www.plantandfood. Co.nz
 Revenue in the food and beverage segment amounts toUS$76,647m in 2020. Revenue is
expected to show an annual growth rate (CAGR 2020-2024) of 8.4%, resulting in a
market volume of US$105,898m by 2024. User penetration is 22.8% in 2020 and is
expected to hit 30.9% by 2024.
Source: https://www. statista.com
 The global food and agriculture industry for 2018 totalled about $8.7 trillion, or about
10% of the world’s GDP.
Source: https://www. plunkettresearch.com
Market Drivers of Food Industry:
1. Enhanced Foods:
Adding protein to snack foods has become trendy, as people look for snacks that are
functional as well as enjoyable.
2. Sustainability:
Sustainability is an important concept to the average food consumer today. Increasingly,
people are making food decisions based on qualities like where food grown, how animals
are used by meat producers were raised, and social responsibility markers.
3. Augmented Transparency:
Consumers are hungry for information, and if they do not get it directly from the brands
they love, they are likely to get it from other sources, which can be terrible for brands. So,
brands should provide transparency on ingredients to get great opportunity to build
loyalty.
4. Flexitarian Lifestyle:
Sustainability concerns and concerns about healthful eating are giving rise to today’s
“flexitarian”, which is someone who is mostly vegetarian, but who eats animal-based food
on occasion.
5. Food Packaging Design as an Extension of Identity:

Food package designers are expected to convey all vital information, offer additional
resources for people who want to know more, support sustainability, and help people feel as if

they are making the best choices in terms of their overall dietary habits and their identities as
a whole.
Source: https://www.pkgbranding.com
Findings and Analysis:
 On March 23, 2020 the National Restaurants Association of India asked the Finance
Ministry for a bailout for the industry. The economic value of the industry is estimated at
Rs.4,23,865 crore.
 Starbucks, KFC, Pizza Hut, and McDonald’s had closed restaurants in Wuhan or Hubei
by January 27. Starbucks announced it expected a $400 million or more in lowered
revenues for the fiscal second quarter because of the China closures.
 Estimated monthly revenue loss of food services in the Netherland due to Coronavirus
outbreak in 2020, by industry
Revenue loss in million euro
Restaurants 245
Hotels 166
9 Services 125
Cafes 94
Source: https://www.statista.com
 Main Coronavirus (COVID-19) related issues affecting the Food Industry in Italy in 2020
Share of respondents
Less Orders 69%
Outsourcing of external services (logistics) 17%
Cancelled Trade Fairs 13%
Absent Employees 11%
Prevention in workplace 7%
Sourcing and delivery of raw materials 6%
More orders 3%
Protesting among the employees 1%

 Change in like- for- like sales of pub, bar and restaurant groups during coronavirus
(COVID-19) Pandemic in the United Kingdom (UK) 2020
Before COVID-19 warning March 2020
(March 9-15)
All outlets -15% -57.6%
Pubs -12% -57.8%
Bars -14% -60%
Restaurants -21% -56.4%
 Distribution of catering business by share of turnover lost during the coronavirus

(COVID-19) in Russia from March 16 to March 22,2020
Share of respondents
Up to 25% 19%
16-50% 55%
51-75% 19%
76-99% 6%
100% 1%
Share: https://www.statista.com
 Food Industry of United States is expected to experience modest setbacks because of its
relatively low dependence on exports, accounting for approximately 16.0% of total sector
revenue. As exports to China are reduced, it is likely that US producers will need to cut
back on supply, causing domestic prices to rise and potentially limiting demand for
Agricultural Sector products
 In United Kingdom Sales by liquid milk processors servicing food services or wholesale
markets are reported to have dropped between 50.0% and 60.0%.
 Demand for certain agricultural products fell due to lockdown and the closure of
restaurants, farmers reported a glut in supply, such as potatoes in the Netherland and milk
in the U.S. state of Wisconsin.
 Major meat processors like JBS USA and Tyson Foods Inc have indefinitely shuttered
slaughterhouses as the virus has spread among plant employees. The shutdown has
limited US production.
 Some industry players like non- perishable and processed food companies are seeing an
increase in sales as customers are either by choice or by quarantine eating at home. Retail
food establishments and restaurants are facing challenges with a shortage of food
supplies, employees and consumers.

 Dairy Farmers of America, the country’s dairy co-operative, is estimating that farmers are
having to dump 3.7 million gallons of milk every single day because of disrupted supply
routes due to coronavirus.
 The New York Times, which interviewed some US producers, cited an example of one
chicken processor having to smash 750,000 unhatched eggs.
 Due to lockdowns and self social distancing lead to the shortage of employees.
 According to new data, cited by BFMTV, French shoppers have increasingly been buying
more organic food since coronavirus fears took hold of the country.
 The UK’s 39000 pubs are currently closed to customers.
 US sales of orange juice, which had been on a decline, are said to be up 38% on last
year’s figures.
Recommendations:
 To attract more customers, offer free kid’s menu and they should not be costly so that
restaurants increase their profits.
 Fix the menu in such a way that it is liked by both adults as well as kids.
 Set new themes on daily basis which attract more customers to see your creativity.
 Aware employees about the social distancing tips and general hygiene so that they serve
the customers properly.
 During the time of coronavirus people are more active on social media so give online
advertisements.
 Avoid large gathering of employees. Allow employees to work in different shifts.
 Conduct an online survey to know the changes in customer sentiment and behaviour
regarding Food Industry.
Limitations:
 The main shortcoming of this study is that it is based on few online sources.
 This study has done during the lockdown so there is no other source to get information
except online sources.
 This study is based on the Data of few countries all over the world.

References:
https://www.statista.com
https://www.bbc.com
https://www.en.m.wikipedia.org
https://www.natlowreview.com
https://www.aljazeera.com
https://www.ibisworld.com
https://www.pkgbranding.com
https://www.plunkettresearch.com
https://www.plamtandfood.co.nz
https://www.rfrel.org
https://chindaily.com
https://www.newfoodmagazine.com
https://www.dairyfoods.com
https://www.outlookindia.com
https://www.bccresearch.com
https://www.thebusinessresearchcompany.com
https://www.restaurant.org
www.business-standard.com
https://www.foodnavigator.com

ACKNOWLEDGEMENT
I am deeply indebted to and would also like to express my sincere thanks to our Director Sir and
Management of Seth Jai Parkash Mukand Lal Institute of Engineering and Technology,
Radaur for providing me research-oriented environment which set the ball rolling for my
research work. They had been a source of inspiration through their constant guidance; personal
interest; encouragement and help. I convey my sincere thanks to them. I am also grateful to
them for reposing confidence in my abilities and giving me the freedom to work on my research.
Last but not the least I would express my gratitude to all the members of JMIT from whom I got
all the necessary help whenever required.

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See discussions, stats, and author profiles for this publication at: https://www.researchgate.

A STUDY ON THE IMPACT OF CORONA VIRUS (COVID-19) ON THE GLOBAL FOOD

Article · June 2020

Ashima Bansal Rajiv Kumar Sadhana

SEE PROFILE SEE PROFILE

Impact of advertising on Consumer Behaviour View project

The user has requested enhancement of the downloaded file.

A STUDY ON THE IMPACT OF CORONA VIRUS (COVID-19) ON THE GLOBAL

Keywords: Coronavirus, Food suppliers/ Food industry, Worse effect.

1. To explore about the effect of coronavirus on food industry.

60 International Journal in Management and Social Science

Food Industry outlook:

Market Drivers of Food Industry:

5. Food Packaging Design as an Extension of Identity:

61 International Journal in Management and Social Science

Findings and Analysis:

62 International Journal in Management and Social Science

 Distribution of catering business by share of turnover lost during the coronavirus

63 International Journal in Management and Social Science

64 International Journal in Management and Social Science

65 International Journal in Management and Social Science

66 International Journal in Management and Social Science

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